By Sagar V. Mankar Shift Up Corp, a South Korean game developer, made a splash on the Kospi stock market with its recent initial public offering (IPO).
The company, known for creating the Stellar Blade, raised an impressive 435 billion won ($320 million) on its first day of trading.
This IPO was the largest for a gaming firm in South Korea in nearly three years and the second-largest in the country this year after Hyundai Marine Solution.
Shift Up’s shares jumped 18% on the first day, closing at 71,000 won ($51) compared to the initial price of 60,000 won ($43.6).
The company was valued at around 2 trillion won last October when Tencent acquired an extra 4% stake, making it the second-largest shareholder with 40.1 percent ownership, following CEO Kim’s 45 percent.
But now after the successful IPO, Shift Up is valued at over 3.48 trillion won, making it the fourth-largest gaming company in Korea after Krafton (PUBG), Netmarble (Lineage 2: Revolution), NCSOFT (Lineage and Guild Wars).
This performance reflects strong investor confidence in the company’s potential.
Why are Investors Backing Shift Up Corp so Heavily?
Founded in 2013 by Hyung-Tae Kim, Shift Up has quickly become a major player in the gaming industry.
The company initially focused on acquiring games but later shifted focus to developing its own titles.
This strategy has paid off, with popular games like “Goddess of Victory: Nikke” and “Stellar Blade” gaining recognition.
Particularly “Stellar Blade” was launched just a couple of months before and became a massive hit, topping sales charts in PlayStation stores across eight countries and selling 1 million copies within a month of its release. This success contributed to Shift Up’s value increasing by over 75% in the past six months.
The company’s financial growth has also been impressive, with a 328% year-on-year increase in operating profit and a 155% increase in revenue in 2023.
Moreover, Chinese tech giant Tencent Holdings Ltd, a notable backer of Shift Up and its second-largest shareholder adds credibility and potential for international expansion.
What are the future plans for Shift Up Corp?
Shift Up plans to use the funds raised from the IPO to diversify its game portfolios further.
The company plans on developing new games, to reinforce its identity as a game developer rather than acquiring existing intellectual properties.
CEO Kim Hyung-tae recently emphasized this strategy in an earning call stating they are focusing on developing high-quality games with top industry talent and expanding its IPs to other platforms.
The success of Shift Up’s IPO further solidifies South Korea’s position as a hub for innovative and profitable gaming companies in the global industry.